The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1887-06-20

doubtless arise III cue time ana give
the Government sufficient trouble
before it is straightend out.
That the entire business has been
mismanaged and bungled is appar-
ent to any one having the least
financial knowledge, and the state
ment in Saturdays Advertiser leaves
it an open question whether the
Government does not stand to lose
at least S125.OO0 when the loan ac-
count with the Syndicate has been
closed. 1t should be the object of
everyone to prevent this If possible,
and therefore discussion of the loan
management upon its merits is
necessary and proper.
The Loan Act provides 100000
for expense of floating the loan and
other charges. The half million
placed in Honolulu appears TO have
absorbed S29, $40; but no statement
is to hand of the expense incurred
in London and San Francisco on
loan account. But it is significant
that the Syndicate only advanced
SSO0,OO0 against an alleged 81 ,0OO,-
600 raised by way of loan at q big
premium, while the utmost the
financial agents are entitled to on
this operation is per cent or $50,
900. If the remaining half million
dollars are borrowed that would
absorb $4,000 expenses, leaving
S475,OOO net for the Government,
should the bonds be sold at par, of
which there can be no reasonable
doubt. We have therefore 500, 900
as the aggregate deduction for ex-
penses of which S29,970 has been
already paid, leaving s70,230 as a
subsequent and final payment. But
the Syndicate retains S2O0,OOO in
hand, which is S129,770 more than
they are fairly entitled to for guaran-
teeing the loan. And unless q very
sharp look out is kept this money
will never be covered into the Treas
. ury. There is no decent or honest
pretence for retaining such an
: amount, because the financial agents
reported that although the bonds
were offered at 90, allotments were
made at premium of or 8 per
cent.
The following items in the expen-
diture statement of the Adcertise1
, require explanation -
Encouragement of Immi
grafton. n................ T4O,OJO ol
u Electric light for the city. 6,359 IL
O Water Works ......... 80, 325 81
Il Sundry disbursements on
loan account and cash
II in Treasury. 93,OOG Al
Ii we remember Alright the first
three items appeared in the Treas
" ury statement, March 31st, 1887
Il the fourth is new. Beginning will
. the last, what services connected
" with the loan do these "sundry dis
u bursements" represent? Do they
~ include travelling expenses ant
y special missions, or what! Ant
" how much cash remained in tn
:, Treasury to loan account, June Is
)" 1887?
:, Regarding the water works tn
" entire expenditure upon new mains
. etc., since July last when the i'm
" provements began, did not exceed
- $4,000 up to March 3lst of thi
q year, to which the statement applies
4 And this was not loan eXpenditur
but demand upon the ordinar
81 revenue. The water works are Ell
u titled to $4,000 under loan, t
:" construct, it was understood, q me-
% reservoir, but nothing in this wa
- has been attempted, and charg
~ Of $50 ,3z5.SS is made against loa
account, leaving a beggarly $40
674.l2 to build storage reservoi
We challenge this unexplained wat'
works charge against loan.
+ How was SG,359. IA expended G
ty loan account for lighting the eli
d, with electricity. This is an outla
in before March 31st, and is of an G,
er ceedingly shady character. If II
~ NOR does not err the bulk of it wei
nc. in bonus and salary to the allege
electrician who lighted the Palat
ne yard during the jubilee. If so, it
c. not charge againt loan.
&c Encouragement of immigration
III SAG, ,096.5l may be all right, but ii
le public would be gratified If the itel
at. were satisfactorily explained. I'll
n four items above mentioned mall
IN -,